Property developer PT Summarecon Agung Tbk (SMRA) obtained shareholders' approval to increase capital with Pre-emptive Rights or rights issues.

In the summary of the minutes of the Extraordinary General Meeting of Shareholders (EGMS) submitted to the Indonesia Stock Exchange, the board of directors of Summarecon Agung revealed that the shareholders approved the Limited Public Offering II.

In the LPO II, the company will issue up to 3.60 billion new shares with a nominal value of Rp100 per share. Meanwhile, the new shares offered in this rights issue have the same rights and equality as all the old shares of SMRA that have been issued and fully paid. The similarity also applies to the right to dividends.

The company plans to issue the pre-emptive rights shares within 12 months after the EGMS gives approval. SMRA will use the funds raised from the rights issue to strengthen its business capital structure in the property and hospitality sector. If a shareholder does not exercise their rights, the share ownership portion of SMRA will later be diluted.

"This additional capital also has an effect on shareholders who do not exercise their Preemptive Rights who will be diluted with the percentage of share ownership in the company," said SMRA.